Superdry issues profit warning after warm weather impacts sales
The Superdry fashion brand has issued a profit warning after its sales were impacted by this year’s weather.
In a statement, the company said that unseasonably warm temperatures in the UK, Europe and the east coast of the US have dampened demand for its autumn/winter ranges, particularly sweatshirts and jackets, which account for around 45% its annual sales.
When combined with the retail challenges faced by some of its trading partners, this means that Superdry now expects its full year profits to be hit by around £10 million. The company also said it will incur around £8 million in additional foreign exchange costs that will be split evenly over the financial year.
Euan Sutherland, chief executive of Superdry, said: "Superdry is a strong brand with significant growth opportunities, backed by robust operational capabilities, but we are not immune to the challenges presented by this extraordinary period of unseasonably hot weather. We are well prepared for peak trading, but the second half of financial year 2019 presents both risks and opportunities.”
Superdry revealed that it is now five months into its 18 month product diversification and innovation programme which will address its reliance on heavier weight garments. This means it will have more dresses, skirts, women's tops and denim in its ranges and will expand into new market segments. It is also planning to invest more in brand communication, digitisation and automation across its business.
Sutherland added: "We continue to focus on delivering efficiencies and cost savings to meet the current challenges and have confidence in our strategy for growth and so are accelerating investments in our future. There are significant opportunities ahead for Superdry in terms of geographical market expansion, category extensions and growth and the ability to leverage its multi-channel operating model in a digital world to deliver to customers in whichever way suits them best."
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